Railroad Legislation

The Interstate Commerce Act (1887) had long proved insufficient in safeguarding the interests of those dependent upon the railroads. Two major efforts were made to improve conditions:

Elkins Act (1903). The Elkins Act ended the common practice of the railroads granting rebates to their most valued customers. The great oil and livestock companies of the day paid the rates stated by the railroads, but demanded rebates on those payments. The giants paid significantly less for rail service than farmers and other small operators.

The railroads had long resented being extorted by the trusts and welcomed the Elkins legislation. The law provided further that rates had to be published and that violations of the law would find both the railroad and the shipper liable for prosecution.

This measure brought some improvement, but other abuses needed to be addressed.